Analysis of Articles about Loss Aversion - Essay Example

Loss Aversion Annotated Biblography Brennan, M. J. Mental Accounting, Loss Aversion, and Individual Stock Returns: Discussion. The Journal of Finance, Vol. 56, No. 4, (Aug., 2001), pp. 1292-1295. Available from http://www.jstor.org/stable/2697797. Brennan (2001) writes from one of the highly reputed academic sources for post secondary and higher educational learning research, which is the Wiley Blackwell Publications. This source has been the hub for housing several academic materials that have been vetted and verified for onward secondary citation and use. Specializing in marketing and finance, Brennan (2001) is a respected contributor of the journal. In this particular source, the author discusses the issue of cost aversion from a phenomenal perspective. This is because the writer treats the topical issue of finance and cost aversion from a rational perspective where he makes use of radical human experiences to understand the basic principles of finance rather than using complex financial terminologies. Due to this reason, the writer introduces a theme, which is refers to as mental accounting. By mental accounting, each member of the wider population is assumed to be a financial expert because in one way or the other, the person uses his or her mental faculties to undertake and comprehend basic marketing and financial principles. The focus of the work of the writer can therefore be said to be looking at marketing and finance from a behavioral approach rather than a technical approach. From a personal analytical view, it would be said that the content of the writer’s work may concern some justifiable points but not much work was done by the writer to prove the authentication of the facts presented. For instance there was not the use of any financial models. The source would however be strongly criticized on the lack of empirical financial models being used in the data collection process. Though a finance and marketing paper, the writes are seen as writing from a more behavioral perspective. This dismisses the use of any well defined quantitative arguments that could offer a generalized persuasion of the arguments put forth. Camerer, Colin. Three Cheers--Psychological, Theoretical, Empirical--For Loss Aversion. Journal of Marketing Research, Vol. 42, No. 2 (May, 2005), pp. 129-133. Available at http://www.jstor.org/stable/30164010 Camerer (2005) is credited as a multi-disciplinary scholar whose research cuts across several fields and acreas of study. His major area however happens to be in finance. The source put forth by Camerer (2005) is published by the American Marketing Association. Indeed, the publication source is a proof of the credibility that is associated with Camerer as a writer because the American Marketing Association is an internationally reputable and recognized association that champions the academic development of the marketing discipline. Whiles writing the article, which is titled “Three Cheers--Psychological, Theoretical, Empirical--For Loss Aversion”, Camerer tries to put one of his character traits to practice by combining the issue of loss aversion with other disciplines of academic studies. These areas, which he names as three cheers are psychological, theoretical and empirical. There however exists a major fall out in the approach used by the researcher in his choice of data collection procedure. This is so said because there were as many as three variables that were examined in the source. To have a very distinct analysis for each variable therefore, it would have been much better if the researcher used different data collection approaches to represent the different variables. This way, there would have been both qualitative and quantitative forms of analysis for the work. One distinguishing aspect of the work presented by Camerer is that he makes a lot of acknowledgement to scholastic economic (marketing) studies. This is one area that makes his work totally different from the other writers. With the idea that loss aversion is theoretical and empirical, the writer introduces economic principles that affects and motivates the marketing attitudes of people, causing most marketers to finally opt for cost aversion rather than seeking for profits. This not withstanding, the writer makes reference and inferences to earlier writers by appreciating the role of behaviorial conditions in loss aversion. This is where the writer tags loss aversion as psychological and therefore introduces the psychophysical perspective of loss aversion. Novemsky, Nathan and Kahneman, Daniel. How Do Intentions Affect Loss Aversion? Journal of Marketing Research, Vol. 42, No. 2 (May, 2005), pp. 139-140. Available at http://www.jstor.org/stable/30164012 This source is linked with the American Marketing Association and published in the Journal of Marketing Research under the auspices of JSTOR archives. The roots of the source are all a confirmation of how credible Novemsky and Kahneman’s (2005) source could be. This is because the Journal of Marketing Research has for long being used as a platform for propagating ethically accepted and concisely screened articles and research work by graduating experts. On the content of their work, Novemsky and Kahneman (2005), like other writers also approach the issue of cost aversion from a behavioral perspective. Instead of being technical with complex marketing and finance theories and models in sampling reasons as to why the phenomenon of cost aversion is experienced by various people, the writers use variables such as emotional attachment and cognitive focus to bring our reasons and factors surrounding cost aversion. The source however shows a massive lack of primary source information in the data presentation and analysis. Touching on maintenance and security of capital market, the writer could have used primary source data to justify the authenticity and reliability of the proposed suggestions. Presently, all that is seen is an attempt to justify the recommendation by using secondary data. Meanwhile, primary sources are those that give the researcher room to test the viability of any variable on a personal note. There could for instance have been a primary data collection process to justify the notion that people would not need much finance and marketing background to operate in the scopes of cost aversion. Rather, people with higher emotional attachment and sharp cognitive effects would be more mindful about protecting and settling with their earnings, revenue and incomes, rather than seeking after profits. REFERENCE LIST Brennan, M. J. Mental Accounting, Loss Aversion, and Individual Stock Returns: Discussion. The Journal of Finance, Vol. 56, No. 4, (Aug., 2001), pp. 1292-1295. Available from http://www.jstor.org/stable/2697797. Camerer, Colin. Three Cheers--Psychological, Theoretical, Empirical--For Loss Aversion. Journal of Marketing Research, Vol. 42, No. 2 (May, 2005), pp. 129-133. Available at http://www.jstor.org/stable/30164010 Novemsky, Nathan and Kahneman, Daniel. How Do Intentions Affect Loss Aversion? Journal of Marketing Research, Vol. 42, No. 2 (May, 2005), pp. 139-140. 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